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CS Executive · Setting Up of Business, Industrial and Labour Laws · Corporate Entities - Companies

Bluewave Corp., incorporated abroad, carried on business in India and has ceased to do so. It has since been dissolved in its home country. Which statement is correct under the Companies Act, 2013?

It may still be wound up in India as an unregistered company. Section 376 expressly applies even though the body corporate has been dissolved or has otherwise ceased to exist under the law of its country of incorporation.

  1. AIt may still be wound up in India as an unregistered company despite its dissolution abroadCorrect
  2. BIt cannot be wound up in India because it no longer exists in law
  3. CIt can be wound up only if its home country consents
  4. DIt can be wound up only as a registered company after first registering in India

Explanation

Section 376 lets a body corporate incorporated outside India that has carried on business in India and ceased to do so be wound up as an unregistered company, notwithstanding that it has been dissolved or ceased to exist under its home country law. So dissolution abroad is no bar.

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